PERFECT COMPETITION
A market structure where the following five standards are met:
- All firms sell an same product;
- All firms are price takers - they cannot control the market price of their product;
- All firms have a relatively small market share;
- Buyers have complete information about the product being sold and the prices charged by each firm; and
- The industry is characterized by freedom of entry and exit.
- Perfect competition is sometimes referred to as "pure competition".
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